The global COVID-19 pandemic affects business just like any other world-wide crisis does – the spendings are severely curtailed in order to prevent layoffs, but it does not guarantee that all of the businesses are going to pull it through, though. These days any business that does not rely on online systems is going to face obstacles that are not easy to overcome.
COVID-19 EFFECT – THE DEVASTATING IMPACT AND ITS OUTCOMES
Sooner or later, the lockdown will be over and we will get back to the regular way of life. However, the effects of it will be especially tangible in a long time perspective. In global crises like this one, the societies heavily rely on technology, artificial intelligence and data science in order to cope with the outcomes of the COVID-19 pandemic.
These days most of the tech vendors have already implemented work from home policies, which seems to be an ideal solution since technologies make it possible to make this transition. Nevertheless, this scenario still seems pretty bad for many businesses. As people are getting more and more used to work from home routines, the economists are predicting a massive recession that is not directly сonnected with the pandemic itself.
Risky businesses as startups, which either boom in a matter of months or die, are going through shaky times, causing Silicon Valley executives to tighten the screws. The stats provided by The New York Times attests that more than 50 startups were forced to resign or furlough more than 6,000 employees in the last two months.
The numbers are anything but optimistic these days. According to the latest research held by Thinknum Alternative Data, 30 most prospective startups in the United States dropped 19 percent or an average of 21 jobs each.
What steps a business needs to take to survive COVID-19 pandemic
According to data gathered from ecommerce retailers, in March 2020 disposable gloves showed a 670% rise in sales compared to the same period of 2019. The second place on the top list of sales was occupied by bread machines, as panic buying caused a shortage of bread in stores all across the country. Machines for home baking had shown a 652% growth rate when compared to 2019 stats.
For many years online retailers have based their business model on the simple pattern that takes holiday season as the main factor – the highest surge of income was expected for Q4. For many years this model allowed ecommerce business owners setting a new higher baseline for the next year Q4 and this principle seemed to be unbreakable for the most.
The top positions on the list of popular demand were also occupied by such products as cough and cold medicine (+535%), long-lasting food (+397%), rice (+386%), weight training equipment (+307%) and dishwashing supplies (+275%). Some of those products are still showing the growth in popular demand ratings while the others (high-value products, home gym equipment) are most likely to show a decrease in sales.
It is also quite obvious that some of the yet-popular goods were pretty unpopular during the last few months. For example, suitcases and briefcases selling rate dropped 77%, cameras, men’s swimwear and bridal dropped 64% when compared to last year’s indexes. It is not hard to figure out that the downfall is a result of excursions, weddings and holidays being postponed.
The whole recession in a year-to-year perspective has shown that retail sales drop by up to 41% compared to last March.
Should we be expecting a U-shaped recovery when the lockdown is over? Markets are down mostly due to the pandemic? Let’s consider it again.
Looking for a business opportunity in times like these, what exactly comes to your mind? Maybe you need more online ads? Or to obtain a decent share of a delivery company? But what if we will think it over again and will question ourselves about what people are really doing now when they are forced to stay at their homes.
Obviously, now is the time when social networks are popular as never before. Whether we are talking about Facebook, Instagram or any other online service, they turn out to become the major generators of income as lockdown keeps us glued to our monitors for the most part of the day. As the advertising budgets are becoming more selective due to the downfall in customer lifetime value, the businesses tend to decrease bids immediately and pull budgets.
That’s why it is important to abandon the “classic” marketing models, becoming a time-sensitive problem solver to keep your business running. Searching for new opportunities, it is worth considering starting a new business with CBM by BRN.AI (Cash Bot Machine by BRAIN).
The economical conditions are speaking for themselves – consumers are becoming more choosy and their buying patterns are also changing heavily if we are talking about a casual season and don’t take a holiday season into account. Online markets and casual mobile shopping are changing the customers’ mindset and purchasing behaviors forming new buying habits, it is essential to track down instantly.
The businesses are looking for new solutions that will match the new social distancing and other safety measures. These circumstances require revitalizing all available resources, including AI, experts, and agents.
We genuinely believe that lockdown-caused purchasing behaviors will survive it’s initial cause and will crystallize as a long-term buying pattern. The intensity of the current crisis has already reached its momentum and that means that those habits will become even stickier than those that are formed on a regular basis.
DTC and Social Media Boom – the next big thing for ecommerce
But what are the predictions for retail and ecommerce? Is it high time to get rich taking advantage of the crisis? Well, the chances seem to be fairly good for those who can be flexible and use social media in a smart way. The latest stats are showing a 55% growth in the social media sphere as the US adults are actively using it as an informational channel where they can get the latest news about the pandemic. Also, social media helps to stay connected and, of course, works as a source of casual entertainment.
Today social media allows e-commerce owners to try new ways of communicating their ideas to potential customers via messaging apps, which seems pretty convenient for both sides. The current technology based on advanced AI systems allows engaging chat-bots on Instagram and Facebook, avoiding any unnecessary in-betweens. Is the employment of AI CRM the answer to the current demand? Quite possibly, it is!
According to the data provided by eMarketer, D2C sales will rise up to $17.75 billion, which is a 24,3% increase when compared with the same stats from the previous year. The whole sector is growing bigger, which means that the momentum can’t be missed.
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